The inflation adjusted annuity (or the “annuity” as it is more commonly known) is a type of retirement savings account created by the Federal Government in the early 1990s. The annuity accounts were created to encourage Americans to save for retirement and for employees to save for their own retirement.
What it does is it puts an annual cap on the amount of money that can be accumulated. Any money that is put into the annuity or the retirement savings account after it has been set aside, is considered tax-free in the year it was saved. In other words, it is tax-free for the entire year that it is put into the account.
Annuity accounts are a way to put up a cushion to prevent a person from losing all their money. The Federal Government can put an annual cap on the amount of money that it will tax, which is why the Federal Government is the main source of money for most retirement accounts. As of 2008, the Federal Government is the only source of money for the entire retirement savings account.
However, the Federal Government is not the only source of money for an annuity. The federal agencies that can put up caps on tax-free money is the IRS, the FDIC, the Securities and Exchange Commission, and the Department of Defense. These agencies use the money to pay for benefits for their employees, and the money is not taxed.
Although the government does not have a strict cap, most annuities take the inflation rate of the last 10 years as the cap, so they tend to be more expensive than cash because the money does not grow with the economy. However, the annuity can be set up to pay for a longer period of time. Annuities offered by companies like Fidelity, Bankrate, and Blue Chip are among the cheapest because there is no cap to the inflation rate.
As an example, I have an annuity, which is offered by Bankrate. I pay it as though I am going to get a new car in three years, and it pays me $2 a month. It’s not a bad idea.
Annuities often offer a cap to the annual rate that can be adjusted over time. This allows you to have a longer period of time to pay a large sum each month, or pay a smaller sum on a monthly basis. They can also be set up so that the interest rate stays the same, so if your monthly payment is $100, the interest rate does not change each month. This is a very good option if you are looking to pay off your debts quickly.
I think I speak for the majority of people when I say inflation is a very good option, especially if you are paying high interest rates. If you can afford to pay high interest rates, then you can afford to pay off your debts much faster.
I’m a firm believer in paying off your debt. My first debt was a car loan where I was told I wouldn’t be able to afford the car payment, but I could afford the car payment. I had to sell the car and pay off the loan. Now, if I can afford to pay off my debt, I don’t have to worry about the loan.